Climate Investing Policy sets out Fidelity International’s approach to align its long-term active asset management strategy with a net zero future
Proprietary Climate Ratings assess the ambition and alignment of Fidelity International’s portfolio companies with a net zero pathway and prioritises engagement as the primary mechanism to reduce real economy emissions
Targets 50% cut in CO2 emissions from investment portfolio by 2030 and sets deadlines for phase out of thermal coal exposure
Fidelity International (Fidelity) has announced today an enhanced, engagement-led climate investing policy, that aligns its long-term, active asset management strategy with a net zero future.
Building on its commitment as a founding signatory to the Net Zero Asset Managers Initiative to reach net zero by 2050, Fidelity has pledged to reduce CO2 emissions across its portfolio by 50% by 2030, from a 2020 baseline.
To guide this process, Fidelity will introduce proprietary Climate Ratings. The Climate Ratings leverage Fidelity’s in-house research capabilities to assess the net zero ambition and alignment of investee companies and will be used to set targets for the net zero pathway of its funds. Together with the enhanced voting practices announced this summer to hold companies to minimum ESG standards, this policy will encourage companies to reduce their impact on the planet and deliver value for all stakeholders in a decarbonising world.